AMD trap on 04.02.2025

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AMD reported 4th Quarter and Full year financial results on 04.02.2025. For the full year 2024, AMD reported record revenue of $25.8 billion, gross margin of 49%, operating income of $1.9 billion, net income of $1.6 billion, and diluted earnings per share of $1.00. “2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said AMD Chair and CEO Dr. Lisa Su. “We closed 2024 with a strong fourth quarter, delivering record revenue up 24% year-over-year, and accelerated earnings expansion while investing aggressively in AI and innovation to position us for long-term growth and value creation,” said AMD EVP, CFO and Treasurer Jean Hu. Sounds good ?

Despite all this, it was a real trap for traders (please, see the graph) https://www.tradingview.com/x/XxTCW3Uv/. The stock was up 8% and went down 8% within 10-15 minutes (the setup is called “popcorn”) and it continues to fall:

Advanced Micro Devices, Inc.
Nasdaq: AMD
February 7, 2025 4:00 PM EST

$ in USD
Price/Change
$107.56
$-2.60 (-2.36%)
Day Range
$106.79 – $109.92
52 Week Range
$106.50 – $227.30

So, what is the reason ? Some analysts wrote that AMD did not provide 2025 forecast on AI chips, which I consider as nonsense. Its just not one of the Wall Street darlings for the moment.

 

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